Senators Refer Audit of PBGC Procurement Process to Justice Department
Six senior members of the U.S. Senate have referred the results of an audit by the Inspector General for the Pension Benefit Guaranty Corporation (PBGC) to the U.S. Department of Justice for a an independent review. The report, available at http://finance.senate.gov and http://help.senate.gov, describes contact by the former director with bidders seeking to manage $2.5 billion of assets held by the PBGC.
Signing the letter were Senators Edward M. Kennedy of Massachusetts, Max Baucus of Montana, Charles E. Grassley of Iowa, and Michael Enzi of Wyoming. The senators have conducted oversight of the PBGC in their positions as Chairmen and Ranking Members of the Health, Education, Labor, and Pensions (HELP) and Finance. Also signing the letter were HELP Committee members Barbara A. Mikulski of Maryland and Richard M. Burr of North Carolina, who are the chair and ranking member of the HELP Subcommittee with oversight of the PBGC. The text of the letter is below:
May 20, 2009
Via Electronic Transmission
The Honorable Eric H. Holder, Jr.
U.S. Department of Justice
950 Pennsylvania Avenue, N.W.
Washington, DC 20530
Dear Attorney General Holder:
In recent days, serious questions have arisen about the actions and involvement of Charles Millard, former director of the Pension Benefit Guaranty Corporation (PBGC), in that agency's procurement processes. Attached is an audit report by the PBGC's Inspector General that investigated troubling allegations relating to Millard's involvement in the selection of investment firms to manage $2.5 billion in trust fund assets.
We trust that the Justice Department will engage in a thorough and independent review of Mr. Millard's actions.
Thank you for your attention and should you have any questions, please have your staff contact Ben Olinsky of Senator Kennedy's staff at (202) 224-XXXX or Emilia DiSanto of Senator Grassley's staff at (202) 224-XXXX.
Edward M. Kennedy
Committee on Finance
Charles E. Grassley
Committee on Finance
Barbara A Mikulski
Richard A. Burr